1- Go to Appearance – Theme Options and select Entry settings tab
2- Scroll down and check the box:Use excerpt summary post and Enable featured thumbnail
3- Setup the Width and Height for the post thumbnail
4- Click Save settings
Setup Blog Categories Widget
This will show a row of all the blog categories on top of the page (below newsletter section).
1- Go to Appearance – Widgets
2- Drag Categories widget to Blog Categories Widgets